June was another up month for the market. However, BI took a small step backward. As a result, the advantage the BI portfolio had over the market narrowed.
The largest drag by far was the recent decline DD took as a result of it reducing forward guidance. Also, SPY issued its quarterly dividend in late June.
Performance Summary:
Benchmark total return year to date = +10.0%
SPY total return year to date +6.4%
Difference vs. SPY = +3.6 pct pts
DOW BI Selection Process:
As was the case for 2013, no individual companies in the Dow meet all the BI selection criteria in order to be chosen as a Long pick for 2014. Across the entire DOW 30
stocks, only Pfizer and Cisco are trading below their downside price targets. However, even these stocks do not meet all other BI selection criterion.
In fact, neither choice has positive earnings prospects. Staying true to the BI method, all three of the 2013 will be held because each of them still has greater
upside than the overall market’s potential. Therefore, the 2014 BI portfolio will continue to hold the same stocks as it did in 2013, which are Cisco, DuPont, and Microsoft.
AllTooFoolish's CAPS Portfolio:
If you are interested in seeing this method applied to a broader universe of stocks, follow my actively managed portfolio in the Fool CAPS section. Here I put my money
where my mouth is. I have been using this methodology for many years with great success. In the Fool CAPS and associated Blog I post my portfolio holdings, thoughts,
and actual trades http://caps.fool.com/Blogs/ViewBlog.aspx?t=01004738267652001....
Below are all associated activity for the 2014 BI portfolio.
DOW Benchmark Portfolio transactions:
1/2/14 CSCO bought 150 shares $22.17
1/2/14 DD bought 52 shares $64.24
1/2/14 MSFT bought 89 shares $37.35
1/2/14 CSCO dividend $0.17/shr
2/13/14 DD dividend $0.45 / shr
2/17/14 MSFT dividend $0.28 / shr
4/1/14 CSCO dividend $0.19/shr
5/13/14 DD dividend $0.45 / shr
5/13/14 MSFT dividend $0.28 / shr
S&P500 transactions:
S&P500 ETF benchmark (SPY ETF) bought 54 shares on 1/2/14 $183.98
3/21/14 SPY dividend $0.825 / shr
6/20/14 SPY dividend $0.937 / shr

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